Total Q3 Profit Halved, But Better Than Expected

GREG KELLER

PARIS (AP) — Total SA, Europe's third-largest oil company, reported Wednesday that profits were more than halved in the third quarter, due to a sharp fall in energy prices, but were still somewhat better than expected.

Total posted third quarter adjusted net profit of €1.9 billion ($2.8 billion), 54 percent below the year ago figure of €4.1 billion but ahead of the €1.8 billion that analysts forecast.

Adjusted profit is a key oil industry measure that excludes inventory gains and losses and tax charges and credits.

Total's earnings were on par with the steep drop in third quarter profits already reported by larger rivals Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC. The industry is struggling to adapt to lower demand and the volatility in oil prices that has seen the price of a barrel spike to nearly $150 last July, then stage a retreat back to around $30 early this year.

Barclays Capital oil and gas industry analyst Lucy Haskins said Total's third quarter production increase was reassuring, and that with new fields starting up this year, "should continue to show improvements into 2010." Haskins rates Total's shares at overweight relative to the oil and gas sector.